Is cst sale is more profitable ?


manish singh negi (self)     25 December 2015

manish singh negi
self 
 26 points

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One seller (A) in delhi selling two of his customer one is in delhi(D) and other is in haryana(H). For Example : A buying in Rs 100 and paying 5% vat, now A selling to D in Rs 100 and charging vat 5% and 2% for H against c-form. Now, Question is if A sell outside delhi is more profitable than sell in delhi. Because A will get 3% input credit. Is this true if yes than why A will sell in delhi because there is a loss of 3%.

avater

AMBUJ SHARMA (CHARTERED ACCOUNTANT)     25 December 2015

AMBUJ SHARMA
CHARTERED ACCOUNTANT 
 8 likes  238 points

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A shall not be eligible for input on material sold against C form. Selling goods against CST is not profitable.

manish singh negi (self)     25 December 2015

manish singh negi
self 
 26 points

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I have Rs 5 of Input tax credit. Now, at the time depositing tax :

1) Delhi : Rs 5 Input tax credit and vat i got from selling is also Rs 5. 

5-5 = 0

2) Haryana = Rs 5 Input tax credit and CST i have received is Rs 2

5-2 = 3 Refund.

 

therefore, CST sale is more profitable. This is my question Dear MR AMBUJ


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